Small and Minority Businesses
There has never been a better time to expand your business, or to start a new one for the matter. And with the help of the Arkansas Economic Development Commission, assistance for small and minority business has never been more accessible.
The Commission's Small and Minority Business Staff will help you plan to start or expand your business in Arkansas. Our team, which specializes in the development and growth of small and minority businesses, can provide technical assistance such as marketing plans, financing and product or service development. We will also recommend partners who can furnish other types of information your business needs.
We encourage business participation in public and private sector procurement opportunities and provide advice in bid information preparation, as well.
Click on the links below to learn more about the help you can receive from the Small and Minority Business Unit, or call (501) 682-6105.
Business Services for Start-Ups/Existing Business
- Business planning /analysis
- Marketing research
- Loan proposals
- Management training programs
- Business counseling
- Information on State of Arkansas bids
- Assistance with completing State of Arkansas bids
- Procurement counseling
Please call (501) 682-6105, or 1-800-ARKANSAS to learn more about the services listed above.
Resource Links:
- UALR Small Business Development Center
- Arkansas State Library
- Arkansas Institute for Economic Advancement
- Small Business Administration
MBE Certification Program
Minority Business Enterprise Certification Program
(Act 1456 of 2003)
Policy
I. Introduction
- Act 1456 of 2003 states "The Division of Minority Business Enterprise of the Economic Development Commission shall promulgate rules to create a certification process for minority business enterprises."
II. Definitions
- A. "Minority" is defined in ACA Section 15-4-313(5) (A-E)
- B. "Minority Business Advisory Council" is defined at ACA Section 15-4-313(1) as created under the provisions of ACA Section 15-4-303
- C. "Director" is defined under ACA Section 15-4-313(2) as the Administrator of the Division of Minority Business Enterprise of the Arkansas Department of Economic Development
- D. "Commission" means the Arkansas Economic Development Commission.
III. Eligible Applicants
- A. Eligible applicants are registered Arkansas Businesses which can submit documentation (see Appendix) to the Arkansas Economic Development Commission's Division of Minority Business Enterprise to prove they are at least 51% owned by a minority or group of minorities, legally entitled to conduct business in the United States, and can demonstrate the capacity to conduct business with the State of Arkansas. The firm must be owned by a permanent resident or residents of the state of Arkansas and its annual revenue must not exceed $10,000,000.
IV. Certification Benefits
Certified MBEs will enjoy several benefits. They will be designated on the commission's list of minority firms as a certified MBE. A signed certificate by the Director of the Division of Minority Business Enterprise will document this designation. The State Procurement Director, state agency Procurement Agents, college and university Procurement Officials, Constitutional offices and minority business officers will be notified of firms which have attained minority certifications.
V. Certification Reciprocity
Eligible firms that are actively certified as MBEs with the Arkansas Regional Minority Supplier Development Council (ARMSDC) or one of their national affiliates, the Small Business Administration (SBA) 8(a) program, or the Arkansas Highway and Transportation Department (AHTD) Disadvantaged Business Enterprise (DBE) program may apply for reciprocity with the State of Arkansas.
VI. Application Process
Interested applicants shall complete the required forms and send them to the commission's Division of Minority Business Enterprise with copies of the required documents as listed in the Appendix. The department shall review the documents, check the applicant's customer references, and may schedule a pre-certification interview/site visit with the applicant. Vendor agreements, invoices, partnership agreements, and articles of incorporation that relate to business with the State of Arkansas are subject to examination.
VII. MBE Operations
Certified Minority Business Enterprises are subject to periodic reviews by the commission. It is mandatory to report any change in the status of the business affecting the ability to meet product demand and/or any change in ownership with a notarized affidavit. All business transactions, including billing and the remittance of such, must be conducted under the name appearing on the MBE certificate.
VIII. Annual Re-Certification
Certified MBEs shall send a letter to the Division of Minority Business Enterprise thirty (30) days prior to their current expiration date stating their desire to maintain certification. The letter shall state that the firm is still 51% minority owned, and must be signed by the firm's executive officer and the chairman of its board of directors, if applicable. The commission maintains the right to re-evaluate the applicant prior to renewal.
IX. Revocation
The Director of the Division of Minority Business Enterprise has the authority to suspend, and/or, under just cause, revoke the certification of any business which fails to comply with the intent of this program. Any business with a revoked certification will be ineligible to re-apply to the program for a period of one year. Prior to revocation of an MBEs certification under this regulation, the MBE shall be afforded an opportunity to discuss with the Director the issues given rise to the revocation.
X. Moratorium
Given evidence of non-compliance with these regulations, the Director of the Division of Minority Business Enterprise has the authority to place a moratorium for one year on the new certification of any business sector for which two or more firms have received sanctions within any six month period.
XI. Appeals
- A. Any applicant who is denied their request for certification because they were unable to prove their minority status may appeal the decision to the Minority Business Advisory Council. A written notice of appeal must be received by the department no more than thirty (30) days after the date of the notice of denial. The Minority Business Advisory Council shall meet to hear the appeal within forty-five (45) days of receipt of the written notice.
- B. Certified businesses may appeal a revocation action to the Minority Business Advisory Council. A written notice of appeal must be received by the department within thirty (30) days after the date on the notice of the revocation. The Minority Business Advisory Council shall meet to hear the appeal within forty-five (45) day of receipt of the written notice.
Appendix
List of Documents
- Completed application form
- Copy of the Articles of Incorporation or Fictitious Name Certificate
- Copy of bank signature card
- Federal Tax Identification Number
- Copy of Birth Certificate/Passport/Green Card/Tribal Card
- Copy of resume of owner(s)
- Proof of state and federal income tax filing for previous three (3) years, business or personal
- Copy of insurance*
- Bonding information*
- Copy of professional license*
- Partnership or Operating Agreement for businesses with two (2) or more owners, evidencing division of shares and profit distribution
*If required or accepted as a normal function of the business
Regulatory Flexibility
In an effort to minimize the regulatory burden on small business, Governor Beebe signed Act 143 of 2007 which created a process called regulatory flexibility in the state of Arkansas. Through Act 143 the Governor and the legislature have challenged Arkansas’ regulatory agencies to establish rules and regulations to protect our citizens, while also being mindful of the financial burden that over-regulation can impose on our state’s small business owners.
Act 143 requires a regulatory agency to submit an economic impact statement that determines:
- The types of small businesses affected by the proposed regulation,
- A description of any adverse effect on small businesses,
- The cost to small businesses,
- Alternative measures that could be considered, and
- A comparison of similar rules in other states.
Then you must send a copy of the proposed rule or regulation and the economic impact statement to AEDC for review.
Patricia Brown, the leader of AEDC's Small Business Development Unit, is the point of contact for regulatory flexibility. If you have questions, you may contact her at 682-6105 or pbrown@arkansasedc.com. To expedite the review process all submissions to should be emailed to Patricia Brown at the address listed above.
- Regulatory Flexibility Frequently Asked Questions
- Act 143 of 2007
- Regulatory Flexibility Process
- Regulation Economic Impact Statement Form
Financing Assistance
Procurement with the State of Arkansas
- Small and Minority Business Directory
- Small and Minority Business Directory listing form
- State Procurement Agents and Officials
- Application for Minority Business Enterprise (MBE) Certification